The parliamentary portfolio committee on finance and budget has completed public hearings on the Movable Securities Bill which seeks to make it mandatory for banks to fully consider movable property as securities for borrowing purposes.
The bill is set to impact mainly on the small and medium enterprises (SMEs) who have been facing challenges in accessing loans due to failure to provide fixed assets that banks consider as collateral.
Under the bill, movable assets which include livestock, planted equipment and vehicles will qualify as collateral.
Chairperson of the parliamentary portfolio committee on finance and budget Cde David Chapfika says the old bill was done in favour of the white regime as they alone had considerable access to fixed assets that could be used as collateral by the banking sector.
“The SMEs don’t have access to fixed assets so this bill seeks to ensure that banks accept their movable property. It also seeks to establish registry in the Reserve Bank of Zimbabwe where these assets that are covered for borrowing purposes by individuals and SMEs are registered for reference by institutions”, said Cde Chapfika.
The committee is already compiling data and will prepare a comprehensive report which will be presented in parliament for debate where the Minister of Finance and Economic Development Cde Patrick Chinamasa will respond.